Strategy Implementation in the Organisation


Added on  2020-02-03

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INTRODUCTIONThe organisational structure is influenced by many factors of internal and externalenvironment directly or indirectly. Different departments of the organisation is affected by thesize of organisation and different organisation structure. The forms of ownership and businessoffering in various sector affected by macro environment to the large extent. The strength and theweaknesses of the company decides the strategy implementation in the organisation by differentstructure of the organisation. The organisation environment compromise of micro and macrofactor affecting different functionality of the organisation (Wild, Wild and Han, 2014).Tesco is multinational business entity which is affected by different regional markets andthe economical changes of the external environment. These changes affects the strategyimplementation of the organisation to the larger extent. The different legal factors influence theorganisation strategy to the large extent. The policies implemented by the government related tothe tax, VAT and the wages of the employee affects the organisation cost and the profit marginof the company. Tesco is the food retailer operating their services in many countries affected bygovernment policies of the various countries.TASK 1P4 Impact of macro environment on the business operation of the organisationThe Tesco is the second largest food retailer company offering their services in more than12 countries of the word. To attain better understanding about the functionality of the Tesco thefactors affecting the organisation at macro and micro level should be considered in the report.The factors affecting the business can be divided into two parts macro and microenvironmental factor. The factors affecting the business at micro level affects the businessdirectly while the macro environment factor influence the company operations indirectly.The factors affecting the Tesco company at macro level are political factors, legal factors,economic factors, social factors, technological factors and environmental factors (Lankes, 2011).1.Political factors: Tesco is operating their services globally. Hence the global politicalfactors influence the operations of the Tesco to the large extent. Tesco is affected by thepolitical stability of the country. The different tax rates, the import and export exciseduties affects the cost and the revenue generation of the Tesco business. Financialinsatiability leads to the implementation of strategies by the government which results in

the creating jobs within the country. Tesco is large organisation which contribute inenhancing employment rate within the country to the large extent.2.Economic factors: The country facing with low economical growth and recession affectsthe Tesco business to the large extent. The consumer are not able to spend their money inpurchasing luxurious goods provided by the Tesco company. The customers prefer thehouse food instead of spending money outside. The Tesco company is focuses in theenhancing the quality of the services related to the packaged food and the home deliveryservices.3.Social Factors: The perception of the society is continuously changing with the time. Theconsumers are becoming more conscious about the health. So, Tesco is implementing inchanges their operations and more focused about ensuring availability of organisationfood for the customers. Now a days the customers are preferring window shopping andthe one point -purchase of product (Bryman and Bell, 2015). This leads to the Tescocompany providing the opportunity of non food items sale in large no at same location.4.Technological factors: The up gradation in technology helps the Tesco to grab newopportunity in expanding their business to the large market. The software related to theJust In Time approach helps the Tesco to establishment of efficient supply chainmanagement system within the organisation. Development of online shopping websitesby the Tesco helps the company to capture wide variety of customers and new marketsglobally. The self service checkpoint reduced the Tesco company labour cost to largeextent. These check out points helps the customers to involved in time saving activitiesleading to increased satisfaction level.5.Environmental factors: the company are following the strategies to reduce theenvironmental damage in their activities. The company like Tesco is developed strategiesto reduce carbon footprint working with agenda reducing it to the 50% till 2020. Tseco isalso involved in spreading awareness between the customers about the environmentalissues.6.Legal factors: The legal factors influence the strategies of the Tesco to the large extent.The Food Retailing commission passed an law of selling food items with its code ofpractice that ensures the fixed pricing strategies to the company and for customers. In

relation to this the Tesco company is offering low price on the purchase of fuel in relationwith the purchase made by the customers in grocery shop.TASK 2P5 Strength and weakness of the Tesco organisationThe strength and weakness of the Tesco company influence the business strategy to thelarge extent. The swot analysis of tesco company comprises of strength and weakness of thetesco and the threats an the opportunities can be defined by the capabilities of the company.Tesco is largest food retailer of the next to the Wal-mart (Osterwalder and Pigneur, 2010). Asdais the competitor brand to the Tesco services. Strength: Tesco is offering their services since 90 years history. This results in building anbrand name in mind of customers.Tesco achieved many awards in their overall shopping career experience.Tesco is the most revenue generating retail business in comparison to its competitors.During the all phases of economy the Tesco not have to face recession ever becausehigh financial reserves and the availability of wide range of property.Weaknesses:Some of the retail outlet of Tesco is not performing well in the recent global crisisdue to impact of the external factors in their operations.Competitors is affecting the pricing strategy of the Tesco to the large extent.Which results in the reduction in profit margin of the company.The supply chain management with the availability of stock and the demand ofproduct is the major weakness of the Tesco company in some of the subsidiaries.Opportunities: The strategic alliance can be better development opportunity for the tesco forinvolved in different production line and catering with new markets.The Joint ventures with the local company helps the Tesco company to performproper market research and capturing the market effectively.The online shopping provides a better opportunity for capturing the global marketwith providing satisfactory services to the large no. of customers.

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